Copriso
Financial Plan
We want to finance growth through increasing sales and enlarging our customer base.
Initial funding for the marketing effort will be crucial to long-term success.
The most important factor in our case is our low overhead and high margin.
We will attempt to maintain our pre-paid and COD business to further strengthen our cash position in the long run.
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
We assume an immediate increase in sales.
We assume there are no dramatic changes in business printing needs.
We assume a constant growth in our long-term customer base.
We assume continued influx of new customers with our aggressive marketing and sales strategies.
We assume that the printing industry will continue to show a resilience against global economic factors as a non-discretionary commodity.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 8.00% | 8.00% | 8.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
7.2 Break-even Analysis
The break-even analysis shows what Copriso requires in sales per month to break even. Our sales forecast is in line with this projection and exceeds it rapidly. Furthermore, we anticipate an ability to regularly acquire 2 to 3 new customers per month.

Break-even Analysis | |
Monthly Revenue Break-even | $21,907 |
Assumptions: | |
Average Percent Variable Cost | 55% |
Estimated Monthly Fixed Cost | $9,858 |
7.3 Projected Profit and Loss
We expect to ramp up the sales conservatively in order to achieve our desired long-term profit estimates.




Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $275,000 | $357,500 | $464,750 |
Direct Cost of Sales | $151,250 | $196,625 | $255,613 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $151,250 | $196,625 | $255,613 |
Gross Margin | $123,750 | $160,875 | $209,138 |
Gross Margin % | 45.00% | 45.00% | 45.00% |
Expenses | |||
Payroll | $90,000 | $90,000 | $90,000 |
Sales and Marketing and Other Expenses | $8,948 | $10,804 | $13,217 |
Depreciation | $0 | $0 | $0 |
Entertainment | $750 | $1,125 | $1,688 |
Telephone/Fax | $1,800 | $1,800 | $1,800 |
Liability Insurance | $600 | $600 | $600 |
Rent | $0 | $0 | $0 |
Payroll Taxes | $16,200 | $16,200 | $16,200 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $118,298 | $120,529 | $123,504 |
Profit Before Interest and Taxes | $5,453 | $40,346 | $85,633 |
EBITDA | $5,453 | $40,346 | $85,633 |
Interest Expense | $3,780 | $3,160 | $2,360 |
Taxes Incurred | $502 | $11,156 | $24,982 |
Net Profit | $1,171 | $26,030 | $58,291 |
Net Profit/Sales | 0.43% | 7.28% | 12.54% |
7.4 Projected Cash Flow
With the current projections, lack of overhead, and expected margins, we project no additional need for future investment or borrowing. Cash flow and cash balance should both increase steadily through the lifecycle of the business eliminating the need for further or ongoing funding.

Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $110,000 | $143,000 | $185,900 |
Cash from Receivables | $141,400 | $207,420 | $269,646 |
Subtotal Cash from Operations | $251,400 | $350,420 | $455,546 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $251,400 | $350,420 | $455,546 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $90,000 | $90,000 | $90,000 |
Bill Payments | $171,000 | $234,452 | $310,295 |
Subtotal Spent on Operations | $261,000 | $324,452 | $400,295 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $5,500 | $10,000 | $10,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $266,500 | $334,452 | $410,295 |
Net Cash Flow | ($15,100) | $15,968 | $45,251 |
Cash Balance | $34,900 | $50,868 | $96,119 |
7.5 Projected Balance Sheet
The following table shows our projected Balance Sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $34,900 | $50,868 | $96,119 |
Accounts Receivable | $23,600 | $30,680 | $39,884 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $58,500 | $81,548 | $136,003 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $58,500 | $81,548 | $136,003 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $12,829 | $19,847 | $26,010 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $12,829 | $19,847 | $26,010 |
Long-term Liabilities | $44,500 | $34,500 | $24,500 |
Total Liabilities | $57,329 | $54,347 | $50,510 |
Paid-in Capital | $43,000 | $43,000 | $43,000 |
Retained Earnings | ($43,000) | ($41,829) | ($15,799) |
Earnings | $1,171 | $26,030 | $58,291 |
Total Capital | $1,171 | $27,201 | $85,492 |
Total Liabilities and Capital | $58,500 | $81,548 | $136,003 |
Net Worth | $1,171 | $27,201 | $85,492 |
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7389.1706, Printing Brokers, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 30.00% | 30.00% | 8.77% |
Percent of Total Assets | ||||
Accounts Receivable | 40.34% | 37.62% | 29.33% | 25.04% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 48.34% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 76.80% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 23.20% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 21.93% | 24.34% | 19.12% | 37.98% |
Long-term Liabilities | 76.07% | 42.31% | 18.01% | 13.86% |
Total Liabilities | 98.00% | 66.64% | 37.14% | 51.84% |
Net Worth | 2.00% | 33.36% | 62.86% | 48.16% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 45.00% | 45.00% | 45.00% | 100.00% |
Selling, General & Administrative Expenses | 45.74% | 38.57% | 33.23% | 82.52% |
Advertising Expenses | 2.00% | 2.00% | 2.00% | 1.54% |
Profit Before Interest and Taxes | 1.98% | 11.29% | 18.43% | 1.73% |
Main Ratios | ||||
Current | 4.56 | 4.11 | 5.23 | 1.60 |
Quick | 4.56 | 4.11 | 5.23 | 1.26 |
Total Debt to Total Assets | 98.00% | 66.64% | 37.14% | 60.73% |
Pre-tax Return on Net Worth | 142.86% | 136.71% | 97.40% | 2.33% |
Pre-tax Return on Assets | 2.86% | 45.60% | 61.23% | 5.94% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 0.43% | 7.28% | 12.54% | n.a |
Return on Equity | 100.00% | 95.70% | 68.18% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 6.99 | 6.99 | 6.99 | n.a |
Collection Days | 58 | 46 | 46 | n.a |
Accounts Payable Turnover | 14.33 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 25 | 26 | n.a |
Total Asset Turnover | 4.70 | 4.38 | 3.42 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 48.97 | 2.00 | 0.59 | n.a |
Current Liab. to Liab. | 0.22 | 0.37 | 0.51 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $45,671 | $61,701 | $109,992 | n.a |
Interest Coverage | 1.44 | 12.77 | 36.29 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.21 | 0.23 | 0.29 | n.a |
Current Debt/Total Assets | 22% | 24% | 19% | n.a |
Acid Test | 2.72 | 2.56 | 3.70 | n.a |
Sales/Net Worth | 234.89 | 13.14 | 5.44 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |